Nestle, Jamba Juice suspend ready-to-drink beverage line

12/22/2008

EMERYVILLE, Calif. Nestle and Jamba Juice’s ready-to-drink beverages squeezed their way into the beverage segment only six months ago, but it was announced last week that the line will now cease to be produced—at least temporarily. Though the product has been well received by consumers, production issues are forcing Nestle, the world’s largest food and beverage company, and leading smoothie restaurant Jamba Juice to suspend production and shipments.

“We have faced challenges recently with manufacturing on a consistent basis, resulting in inventory and out-of-stock issues. This is particularly disappointing given the strong reception we have received from consumers and customers alike,” said Nestle USA Beverage Division president Rob Case. “We at Nestle are fully committed to re-assessing our Jamba ready-to-drink beverage proposition so that we can come back stronger and positioned for success in the future.”

According to Jamba, Inc.’s president and CEO, James White, said that customer sell-in and feedback proved better than expected, and the six SKUs ranked among the top in the category. “While this is an unfortunate event, this suspension will provide the opportunity to evaluate new manufacturing solutions which could enable the Jamba brand to secure an even stronger position in ready-to-drink beverages.”

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